PwC for NUR Energie Ltd

PwC was asked by Nur Energie to performa study on the possible impacts of the transposition of the Article 9, EC Directive 2009/28 ("RES Directive"). According to the Directive, one or moreMember States may cooperate with one or more third countries on all types of joint projects regarding the production of electricity from renewable energy sources. Such cooperation may involve private operators opening interesting investment opportunities for private operators in the Middle East North African (MENA) countries and export it to EU. In order to guarantee a first outlook of the issue, PwC has investigated:

the process of acknowledgement of the energy produced abroad, including Guarantees of Origin

the proposed incentive scheme for energy importers, providing a stable support to project cash flows

the EC‘s position on long term PPA contracts, indicated by the client as the preferred solution for ensuring the initiative bankability

the financial instruments available on the energy market and the discussion in progress for solving long term market failures, in a situation where PPA contracts provided by a public Single Buyer (directly or as last resort) can conflict with the EC legislation in force about internal market equilibria

the political process to be activated to achieve a bilateral agreement covering the joint project and its basic contents.

Deliverables

An interim Report has been prepared and discussed with the client containing the analysis of the ongoing process and the insights related to the decision making process. The interim Report contained the following items:

Long term PPAs in the European context

Current debate in Italy and alternatives under discussion

Support to Article 9-related long term investments in the next future in Italy

Spurs, warnings and obstacles

Roadmap

Benefits

The benefits identified for the client have been, among the other:

the design of a stakeholders map to be followed to build a bilateral agreement enabling the project realization

the identification of the incentives schemes which will be made available, based on Green Certificates evaluated by the same mechanism of the existing ones for the country-based producers with a discount considering lower socio-economic impacts of the project at national level

the possible financial market instruments to be managed to ensure the bankability of the project for the part not covered by incentives

the basic institutional conditions, especially in Tunisia, to be checked to avoid project failures at birth